Gas prices could top $5 if Strait of Hormuz stays shut, J.P. Morgan says

MoneyWatch Gas prices could soon breach $5 a gallon if Strait of Hormuz remains shut, J.P. Morgan analysts say .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Mary Cunningham Mary Cunningham Reporter, MoneyWatch Mary Cunningham is a reporter for CBS MoneyWatch. She previously worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. Read Full Bio Mary Cunningham April 7, 2026 / 12:33 PM EDT / CBS News Add CBS News on Google Gasoline prices in the U.S., which have risen $1.16 a gallon since the start of the Iran war in February, could top $5 a gallon as soon as later this month if the Strait of Hormuz remains closed through mid-April, according to J.P. Morgan energy analysts.Higher prices at the pump could also consume "much or all" of the larger tax refunds many Americans were expected to receive this year because of the Republican-backed tax and spending bill passed in 2025, they note."Every 10¢ rise in the average price of regular gasoline this year would add just over another $12 [billiion] to the annual outlays for gasoline," J.P. Morgan said in a note to clients. "Our U.S. economics team estimates that the recent increase in the gasoline price, if it persists for the rest of this year, should amount to around a $100 [billion] hit to consumers' purchasing power."Gas prices have surged in the U.S. as the conflict in the Middle East blocks shipments of oil passing through the strategically vital Strait of Hormuz. As of Tuesday, the average national gas price was $4.14 a gallon, up from $2.98 just before the outbreak of hostilities, according to data from AAA. Patrick De Haan, a petroleum expert at GasBuddy, agrees that gas prices could surpass $5 a gallon by late April if the situation in the Middle East doesn't improve soon. "New records for both gasoline and diesel are possible, and more likely if the president follows through on his...